New Products and Financial Risk Changes

The historic focus of new products research has been on the ability of new products to enhance the profitability and competitive position of the innovating firm. In this article, Timothy Devinney shows that there exists an overlooked and potentially significant side effect associated with new product innovations: financial risk changes. He reports that significant financial risk changes occurred in approximately 50% of the new product announcements he examined. The magnitude of these financial risk changes translates into overestimates or underestimates of the firm's cost of capital by 17% to 18% and is strongly and positively related to the size of the firm and the firm's new product innovation activity.     

Using an approximate kiefer-weiss solution for testing insect population densities

Summary A sequential testing procedure called 2-SPRT for the meanμ of the negative binomial distribution with known exponentk is presented. For any fixedμ ₀(μ ₁<μ ₀<μ ₂), the 2-SPRT provides an asymptotic solution to the modified Kiefer-Weiss problem. Determination ofμ ₀ such that the test provides an approximate solution to the Kiefer-Weiss problem is described. The behavior of the 2-SPRT and the Sequential Probability Ratio Test is investigated using Monte Carlo methods. The error probabilities and the average sample numbers are compared. All the computations were carried out on the Alabama Supercomputer.     

Simulation of leachate migration in leaky aquifers

A two-dimensional cross-section finite difference model is presented to simulate density dependent leachate migration in leaky aquifers. Unlike existing models, a new approach is adopted to couple the groundwater-flow equation and the hydrodynamic dispersion equation with the elimination of the intermediate step of calculating velocities. The concept of the reference density is employed, permitting increased accuracy (over pressure-based models) in the representation of the transport process. The model is then used to study the effect of several hydraulic and transport parameters on the flow pattern and plume migration which are found to be very sensitive to most of these parameters. Equiconcentration and equipotential lines are overlapped to provide a better understanding of the coupling effect.     

On invariant parametric covariance families

Summary In this note we characterize all linear transformations of random vectors which are invariant for a given parametric covariance family. Two one-dimensional covariance families are discussed in detail.     

Financing budget deficits in the Netherlands

Summary In The Netherlands public debt management is in the hands of the budgetary policy-maker, whose recourse to the capital market can exceed or fall short of the total borrowing requirement in order to absorb or create liquidity. The conduct of that policy since the early 1960's is analyzed in this paper, emphasizing the importance of medium-term control over the public finances as a prerequisite for the ability of debt management to make a flexible contribution to monetary policy. During the 1960's this condition was satisfied and debt management followed a stable countercyclical pattern which, however, was abandoned after the early 1970's as the public finances swung into substantial disequilibrium.The author thanks J. Boughton, L. Bovenberg, D. Hendry, P. Masson, J. Muellbauer, and the referees for comments on earlier versions. However, the views expressed are his alone and do not necessarily represent those of the International Monetary Fund.     

A tool to evaluate the fertiliser value and the environmental impact of substrates from wastewater treatment.

Fertilisers may contain pollutants that are applied to the field together with the nutrients. Comparing fertilisers is difficult because of their different concentrations of nutrients and pollutants. In this study an already existing model was taken. It was further developed to compare nutrient fluxes (N, P, K, Ca, Mg, S, humus) and pollutants (heavy metals and pharmaceuticals) of pig and cattle slurry as well as human urine. The data used is taken from literature and, in the case of pharmaceuticals in urine, daily excretion rates were calculated. An amount of 19 m3 ha(-1) a(-1) undiluted urine can be applied, limiting factor is sulphur. Without taking over-fertilisation into account, an addition of mineral fertiliser is required to any organic fertiliser application. In general, heavy metal, antibiotic, and hormone fluxes are higher by using animal manure then urine as fertiliser. However, additional loads of other pharmaceuticals consumed by humans have to be considered. Overall, the model is a suitable tool worthwhile to be extended in aspects of hygiene, environmental impacts as for example, degradation processes as well as ecotoxicology.     

Use of flavour profile and consumer panels to determine differences between local water supplies and desalinated seawater.

The San Diego County Water Authority of California has initiated planning for coastal desalination facilities to augment their water supplies. Integration of the different water qualities from these facilities into existing pipelines must be achieved. This investigation determined whether, and to what degree, consumers can discriminate between desalinated seawater and imported water supplies and how these investigations can contribute to decision making regarding the need for construction of facilities to blend such supplies prior to delivery. Based upon the results of the flavour profile analysis panel and the consumer evaluation sessions, it was concluded that free chlorine versus chloramine disinfection or different concentrations of disinfectants did not significantly affect consumer perception of the taste and odour of desalinated seawater or blends with Colorado River water and State project water. Consumers were able to discern between desalinated seawater and imported water, preferring imported water when forced to make a choice. However, the investigators did not believe that the difference in consumer perception was significant enough to warrant special blending facilities to mitigate the relatively minor aesthetic quality differences between imported water supplies and desalinated seawater.